Gov. Dennis Daugaard is on board with plans to extend utility service to a proposed development park in southeast Dell Rapids.

Daugaard’s office announced last week that the Board of Water and Natural Resources approved a $1.2 million, low interest loan to stretch city sewer lines from where they’re capped now – immediately south of the Big Sioux River – to the southeast corner of Centennial Place and Garfield Avenue.

“We don’t have $1.2 million in cash to spend, so the historical way of financing is through the state water plan,” said Justin Weiland, Dell Rapids City Administrator.

Weiland said getting approved for the loan was the last of many steps taken by the city to get the ball rolling on the sewer extension project.

The City of Dell Rapids pursued the project and the 20-year, 3 percent interest loan at the urging of the Dell Rapids Economic Development Corporation. The development corporation has an option to purchase 80 acres of land located southeast of the Centennial Place and Garfield Avenue intersection for $15,000 per acre.

The estimated cost of the sewer extension project is $1.3 million and includes installing force main and gravity sewer, and constructing a lift station and connecting the sewer lines to the planned development area.

The city will cover the remaining $100,000 from the sewer fund.

“We wanted to show that we have some skin in the game,” Weiland said.
Some loan dollars will pay for analyzing the aging water and sewer pipes throughout Dell Rapids. The city will use cameras to get a look inside the oldest utility lines in town to discover potential infrastructure risks.

Replacing the eight-inch sewer along Beach Avenue under the railroad tracks will also be covered under the loan.

L.G. Everest requested its replacement at a city council meeting in June 2013, citing safety concerns. The rock mining company is expected to pay 10 percent of the project costs when work is completed sometime this year.

Daugaard said in a release that the loan provides resources needed to address Dell Rapids’ infrastructure concerns.

“This money will help Dell Rapids expand city sanitary sewer service, replace a portion of its aging system and identify other areas of the system that need replacement or rehabilitation,” he said.